Adidas in 2009 - Has Corporate Restructuring Increased Shareholder Value?

Adidas in 2009

Has corporate restructuring increased shareholder value?

Adidas is a German company dating its origin in 1920 when German baker Adolph (Adi) Dassler tried his hand at designing and producing footwear for athletes competing in soccer, tennis and track and field events. Adolph was joined by his brother, Rudoph, joined him in his shoemaking venture to estabilish Gebruder Dassler Schuhfabrik (Dassler Brothers Shoe Factory)

The brothers made many innovations in making different kinds of shoes making it tailor-made for each purpose. The first innovation came in 1925, when they integrated studs and spikes into the soles of track and field shoes. Another major invention was the arch support. Many of the standard features of today’s athletic footwear were developed by Dassler brothers, with Adi Dassler alone accumulating 700 patents and property rights worldwide. The company was innovative in the field of marketing. They gave away their shoes to German athletes competing in 1928 Olympic games in Amsterdam. By the 1936 Olympic games in Berlin, most athletes would compete only in Gebruder Dassler shoes. The company made 30 different styles of shoes for athletes in 11 sports. All of the company’s styles were distinguished from other brands by two stripes applied to each side of the shoe.

Formation of PUMA

After the second world war, when Rudolph Dassler was drafted into the army and spent a year in an Allied prisoner-of-war camp after being captured. In 1948, the two brothers entered into a bitter feud. Rudolpf moved to the other side of the village to establish his own shoe company Puma Schuhfabrik Rudolph Dassler. After this, Adolph Dassler renamed his company ADIDAS